The Effect Of Integrated Marketing Communication OnCustomer Based Brand .

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Global Journal of Management and Business ResearchMarketingVolume 13 Issue 6 Version 1.0 Year 2013Type: Double Blind Peer Reviewed International Research JournalPublisher: Global Journals Inc. (USA)Online ISSN: 2249-4588 & Print ISSN: 0975-5853The Effect of Integrated Marketing Communication onCustomer Based Brand Equity with Mediating Role ofCorporate Reputation in Cellular Industry of PakistanBy Muhammad Mubushar, Imtiaz Haider & Kamran IftikharMohammad Ali Jinnah University, IslamabadAbstract - Purpose - In competitive environment the brand managers are under the pressure and the mainheadache of them how to build the brand equity for the identity, differentiation, and long term financialhealth of the company? This study investigates that whether marketers and brand managers should usethe all the tool of marketing communication and which medium is stronger affect on the brand equity.Methodology/Design/Approach - This empirical study has been conducted in the area ofRawalpindi and Islamabad Pakistan. Data was collected from consumer of cellular phone with the help ofadapted research questionnaire consisting of twenty five items for seven variables used in theoreticalframework. Furthermore, SPSS software has been used for conducting reliability, correlation, regression,and mediation analysis. We have also used Baron and Kenny 2012.Keywords : perceived advertising spending, price promotion, public relations, corporate reputation, brandequity.GJMBR-E Classification : JEL Code : ReputationinCellularIndustryofPakistanStrictly as per the compliance and regulations of: 2013. Muhammad Mubushar, Imtiaz Haider & Kamran Iftikhar. This is a research/review paper, distributed under the terms ofthe Creative Commons Attribution-Noncommercial 3.0 Unported License rmitting all non-commercial use, distribution, and reproduction in any medium, provided the original work is properly cited.

Abstract - Purpose - In competitive environment the brandmanagers are under the pressure and the main headache ofthem how to build the brand equity for the identity,differentiation, and long term financial health of the company?This study investigates that whether marketers and brandmanagers should use the all the tool of marketingcommunication and which medium is stronger affect on thebrand equity.Methodology/Design/Approach - This empirical studyhas been conducted in the area of Rawalpindi and IslamabadPakistan. Data was collected from consumer of cellular phonewith the help of adapted research questionnaire consisting oftwenty five items for seven variables used in theoreticalframework. Furthermore, SPSS software has been used forconducting reliability, correlation, regression, and mediationanalysis. We have also used Baron and Kenny 2012.Practical implication - Setting the marketing strategies for the effective brand management and achieving theoverall goals of companies the mangers should focus onadvertising, direct marketing and public relation in Pakistanicontext.Findings - The most important element of integratedmarketing communication is advertising which plays significant role to build the brand image in the eyes of customers.Secondly the price promotion also attracts the clientele andboosts the sale growth. The sale people is not contribute tobuilding the brand equity according to the data of respondentsdue to sale persons of cellular deal only in the corporatesectors and facilitate the heavy users.Keywords : perceived advertising spending, pricepromotion, public relations, corporate reputation, brandequity.TI.Introductionhis paper explores the role of integrated marketingcommunication on customers base brand equity inthe five companies of cellular industry of Pakistan.The framework is developed with in the line of researchand theory that Advertising, personal selling, pricepromotion, public relation and direct marketing haveextensive force on the ingredients of brand equity whichis measured with the help of (brand awareness, brandAuthors α σ ρ : Mohammad Ali Jinnah University, Islamabad.E-mail : Mubushar.raja@gmail.comassociation, brand loyalty and perceived quality (Aaker:1991).From the very beginning many companies arestriving to develop the marketing strategies in order togain the brand identity, sale growth and point ofdifference in the competitive environment. The appearance of integrated marketing communication is becoming very sophisticated tool for formulating themarketing strategies. Companies use it as weapon toremain competitive in the digital atmosphere. In start of1990 IMC become popular topic the field of marketing(Olof Holm: 2006). Large and multinational companiesalways inject dollarsto generate the brand name whichhelps to deviate it from the other competitors. For overthe couple of years the area of brand equity has gainedconsiderable research attention. The one best reason isthat a powerful brand has a room to create the growth,market shares and the most essential assets of abusiness (customer’s loyalty).A brand is define as any name, term, sign,jingle, packaging, logo, design and combination of allwhich differentiate the product or service with the otherproducts or services. (Philip kotler page: 198).Brandawareness, brand association, brand loyalty and perceived quality are the four components of brand equity(Aaker: 1991). In addition to that a dominant brandelaborates a positive impact of product quality anddelivers the brand awareness in consistent manners andbuilds the brand image. For the purpose of competitioncompanies have different ways to transform thebusiness with the help of changing business dimensionsand opening the new branches or subunits. Forinstance, the trend of current research focuses themanagement and measurement of brand equity whichenables the brand managers to formulate theappropriate branding strategies to reinforce the brand.Two school of thoughts exits in the ground of branding.One is set of assets and liabilities which is known asfinancial base equity and determine to judge thefinancial position of a company. Other is based oncustomers and so called customers base brand equitywhich is measured to know the productivity andattitudes of the customers towards the brand (Keller:1993). 2013 Global Journals Inc. (US)21Global Journal of Management and Business Research ( E ) Volume XIII Issue VI Version IMuhammad Mubushar α, Imtiaz Haider σ & Kamran Iftikhar ρYear 2013The Effect of Integrated MarketingCommunication on Customer Based BrandEquity with Mediating Role of CorporateReputation in Cellular Industry of Pakistan

Year 2013The Effect of Integrated Marketing Communication on Customer Based Brand Equity with MediatingRole of Corporate Reputation in Cellular Industry of PakistanGlobal Journal of Management and Business Research ( E ) Volume XIII Issue VI Version I22A huge chunk of budget is spent on theadvertising in multinational companies to build thestrong brand image in the corporate world. According toresearchers the advertising and price promotions areenough tools to build the brand equity. The presentstudy answers the more important and explore ablequestion that how customers fascinate toward theproducts or services and compelled by the force forpurchasing and repurchasing. In his connection, whichone facet of brand equity is vital to develop the requiredattitude of customers? Secondly, how the mostimportant tools of has noteworthy effect on the brandequity. This study provide the bridge to fill the gapbetween literature and practical implication that forwhich communication tools for marketing and ingredients of brand equity are important for the managers tofocus and build the brand equity.a) Research Questions Have five dimensions of integrated marketingcommunication significant effect on brand equity incellular industry of Pakistan? Does the corporate reputation mediate between fivefacets of marketing communication and brandequity in cellular industry of Pakistan?b) Research Objectives To examine the relation among five facets ofmarketing communication and brand equity incellular industry of Pakistan.To identify the most important facet of integratedmarketing communication that affects the brandequity.To investigate the mediating affect of corporatereputation between various facets of marketingcommunication and brand equity.To provide the guidelines for brand mangersinvolved in developing marketing strategies forcellular industry of Pakistan.c) Significance of the StudyThis study contributes simultaneously to identifythe most important component of integrated marketingcommunication that builds up the brand equity tofacilitate the brand managers. Also develops understanding about the dimensions of brand equity. Theobvious reason is that without knowing the rightcommunicational channel the health of brand cannot bemaintained in the minds of the customers.II.Literature Reviewa) Integrated Marketing Communications and itsComponentsMarketing is the process by which companiesgenerate values for the customers according to theirneed and build long term relations with customers inorder to gain the value from the customers in return 2013 Global Journals Inc. (US)(Philip Kotler: principle of marketing 13th addition.p:5:2003). To enhance the value of market offeringmarketers use the combination more than a fewmethods, all have aim to raise the benefits and minimizethe cost. In starting the marketers apply sellingtechniques and bring the highly standardize products inthe markets with the help of mass marketing strategiesfor mass customers and later on the integratedmarketing communication came to existence in 1990(Kotler, 2003). Promotional tools are the combination ofadvertising, price promotion, personal selling, publicrelations and direct marketing (Blythe, 2000). The IMC isbasically related create awareness initially and capturethe interest of target market. The existence of integratedmarketing communication is the fruit of rapid advancement in technology and globalization. (Olof Holm:2006). A potent linkage exists between the allocation ofadvertising budget and customer’s perception towardthe market offering whereas the negative linkagebetween the advertising and capturing the market share.(George S. Low: 2000). The creation of brand personality includes the corporate communication and theadjustment of brand life cycle. In this way a companycan use the advertising strategy to influence thecustomers in the process of creating effective brandpersonality with aspect of his sincerity, emotionalattachment and popularity (Rajagopal: 2006). Sponsorship advertising is the very good tool to build thebrand equity. In today’s life which has become highlycompetitive environment for capturing the interest ofcustomers. It is impossible that firms confine theircommunication by a single tool of communication.It should investigate that how a company maycommunicate with other tools like personal sellingand public relatios. (Franc ois A. Carrillat and Alaind’Astous: 2009).H1a : Advertising has a significant effect onbrand equity.H1b : Corporate reputation mediates betweenadvertising and brand equity.In the level of introduction the price promotion isa helping tool to uplift the unit sale but in long term itcreates the negative impact on the health of brand.(Chu-Mei-Liu: 2002). Price promotion is hurdle to createthe association of brand with aspect of quality.Reduction in price has a more negative impression onthe perceived quality among the all parts of brandequity. (Michael Clayton and Jun Heo: 2011). Pricepremium especially in grocery sector stress on thebrand equity regarding the four dimension of brandequity, packaging, attributes a quality. On grocery storesare more quality transparence in the perception ofcustomers and high prices show the uniqueness andbrand content. (Johan Anselmsson: 2007).H2a : Price promotion has a significant effect onbrand equity.

Personal selling has a valuable impact on thebrand loyalty. Companies use the personal sellingstrategies to build up the customer trust whichstrengthen the brand loyalty of customers and contribute the brand equity. The impact of PR is moderatingon brand, when a company has a unfavorable brandimage, it should use the personal strategies to capturethe customer trust (An-Tien Hsieh and Chung-Kai Li:2007).H3a: Personal selling has a significant effect onbrand equity.H3b: Corporate reputation mediates betweenprice promotion and brand equity.In marketing communication the direct or onlinemarketing environment provide the sufficient challengeand opportunities which is very important to enhancethe brand image and develop the brand strategies in theera of online branding (Jennifer Rowley: 2004). Textmessaging is using as a tool of marketing to remind thecustomers rather than a comprehensive marketingcampaign with the improving of marketing strategies aswell as service quality. The management should makesure the least possible irritating while developing themessage marketing strategies. Interactive ad is mostlyused in text marketing campaign in todayworld.(Phumisak Smutkupt, Donyaprueth Krairit and DoBa Khang : 2012). Direct marketing create the perception among the customers that company has avariety of products, values for money and allow them tocompare the prices and this tool is mostly using by thebrand managers to concentrate on brand equity(Rosa E.Rios and Hernan E. Riquelme: 2008)H4a: Direct marketing has a significant effect onbrand equity.H4b: Corporate reputation mediates betweendirect marketing and brand equity.Management of public relation and the trainingof sale persons may help to establish the brand strengthfor a company which differentiates the firm incompetitive environment. (Patrick Poon, Gerald Albaumand Peter Shiu-Fai Chan: 2012).b) Brand Equity and its DimensionsBrand is an asset which is developed andmanaged cautiously. Brand equity is the different set ofassets which differentiate the market offering andknowing the effects on customers attitude and behavior(Philip Kotler in principles of Marketing p:203).Brandequity is built and measure by the four path awarenessof brand, association of brand, loyalty and perceivedquality. (Aker: 1991). If we talk about brand equity inhotel markets then brand equity consists on brandawareness, brand association, perceived quality andbrand loyalty. The very first three components areresponsible to give knowledge to the customers aboutthe brand and impinge on the brand loyalty which is thecore part of brand equity. For the perspective of creatingbrand awareness and brand association noteworthy roleis advertising and word of mouth. (Jing Bill Xu andAndrew Chan: 2009). The equity of brand may divergefrom culture to culture. For instance, in American culturethe perceived quality considers for the building andmeasuring the brand equity whereas tin Korean culturebrand loyalty is the main and major evaluation of brandequity. The most obvious reason is that that the brandloyalty creates by the advertising in Korea. In retailindustry the electronic media and internet are the bestchannels to build up the brand equity (Jaehee Jung andEunyoung Sung: 2006).Brand association and brandloyalty is the essence of brand equity. The focusingelement is loyalty to develop the brand equity. (XiaoTong and Jana M. Hawley: 2009). If the high behavioralloyalty by the customers the more brand equity willconsider. There is no relation between behavioral loyaltyand belief, but behavioral loyalty and beliefsimultaneously add in the loyalty regarding attitude.(Steven A. Taylor and Kevin Celuch: 2004). Satisfactionand loyalty of attitude are the main deriving forces andenable the customers to make the purchasing amongthe availability of different brands. To enhance the brandloyalty companies must focus on additional services inthe most expensive brand where the switching cost ofbrand is very high (Ahmed H. Tolba and Salah S.Hassan: 2009). Social responsibility for the welfare ofthe society leverage the perceived quality, reputation ofcompany and loyalty with company and all threecomponents leads to develop the brand equity. (UrszulaŚwierczyńska- Kaczor1, Paweł Kossecki: 2007). Corporate social responsibility is defined as that all programsfor the betterment of social structure that sustain theperformance of the business. CSR are those selfinitiative activities which monitor the business in ethical,social and legal framework to gain the social reputationn in society. According to the report of world BusinessCouncil for Sustainable Development (WBCSD) thatCSR is the duties of a business which are directlyconnected with employees, their families and their livingstandards (WBCSD, 2001). CSR is the name ofenriching the society, economic contribution, and alignthe business with the prospect of society. But in today,sworld it has become the stylish instrument to earn thebusiness. In spite of enough knowledge and attentionsthe concept of CSR is undefined.(Dima Jamali RamezMirshak, 2007). Corporate social responsibility hasbecome an authentic rule to judge the financial positionof a company. (Marc VilanovaJosep Maria LozanoDaniel Arenas: 2008). In the culture of Italy theenormous companies fulfill the social responsibility bythe environmental management, local employment,scheming and reporting strategies. 2013 Global Journals Inc. (US)23Global Journal of Management and Business Research ( E ) Volume XIII Issue VI Version IH2b : Corporate reputation mediates betweenPrice promotion and brand equityYear 2013The Effect of Integrated Marketing Communication on Customer Based Brand Equity with MediatingRole of Corporate Reputation in Cellular Industry of Pakistan

The Effect of Integrated Marketing Communication on Customer Based Brand Equity with MediatingRole of Corporate Reputation in Cellular Industry of Pakistandependent variable. Mediator is an essential part ofconceptual model. The full mediation occurred when therelation between the predictor and criterion variablewould be zero.Corporate reputation mediates between facetsof marketing communication and brand equity: According to Kenny and Preacher (2012) two steps contemporary approach to mediation analysis used forcurrent research.(Francesco Penini Angeloantonio RussoAntonio Tencati: 2007).H5a: Public Relations has a significant effect onbrand equity.H5b: Corporate reputation mediates betweenpublic relations brand equity.c) Corporate Reputation as a MediatorrelationA mediator is a variable that signify the newbetween the independent variable andYear 2013III.Theoretical Frame WorkCorporate ReputationbaGlobal Journal of Management and Business Research ( E ) Volume XIII Issue VI Version I24Integrated marketingCommunication1.2.3.4.5.AdvertisingPrice promotionPersonal SellingDirect MarketingPublic RelationsIV.MethodologyThe population of the study is the consumers ofcellular companies operating in Pakistan Rawalpindi andIslamabad. 135 Five point likert scale questionnaireconsisting of twenty seven items were used to collectdata through convenient sampling.The questionnaire used in the surveys of fivefacets of marketing communications, corporate reputetion and brand equity, as well as respondent demographic information. Some questions were particularlyincluded to judge the respondents’ perception regardingmarketing communication facets, corporate reputationand brand equity for specific regional brand. Eachrespondent was investigated to point out his awarenessBrand Equity1.2.3.C’C4.Brand awarenessPerceived QualityBrandAssociationBrand loyaltyabout brands. Respondents, who have brandawareness about particular brand, were asked if theytried that brand. If so, they were asked to report theirperception regarding IMC medium advertising, personalselling, price promotion, public relation and directmarketing, corporate reputation and brand equity. Theseeming responses were scaled on a five-point lickertdifferential scale indicating strongly agrees to stronglydisagree as the end points. The survey mechanism waspre-tested and then modified as a result of the pretest(Huntet al., 1982). The questionnaire items used todetermine marketing communication and brand equityare presented in Appendix-I.Step 1: BE Co C1AD C2PS C3PP C4PR C5DM e1(1)Step 2: CR ao a1AD a2PS a3PP a4PR a5DM e2(2)Step 3 & 4: BE Ćo Ć1AD Ć2PS Ć3PP Ć4PR Ć5DM bCR e3V.Findings And Resultsa) Reliability AnalysisWe check the reliability of all variables which areexplaining under the following. Cronbach’s alpha was 2013 Global Journals Inc. (US)(3)calculated to measure the reliability after putting thedata in SPSS. We collect the data from respondents withthe help of lickert scale. The higher value of cronbach,salpha depicts the higher reliability. The value ofcronbach,s alpha is less than .60 shows poor reliability,

The Effect of Integrated Marketing Communication on Customer Based Brand Equity with MediatingRole of Corporate Reputation in Cellular Industry of PakistanAdvertisingPrice promotionPersonal sellingCorporatereputationPublic relationDirect marketingBrand EquityNo. 621.845It shows that all variables have the reliability inacceptable range.c) Respondents SummaryType MaleFemaleTotalBelow 25Above 25TotalMobilinkU- phoneTelenorZongWaridTotalBelow 5YearsAbove 10051.448.6100.075.7100.7The above table shows the frequency of 140respondents in which 106 (75.7%) are male and 34(24.3%) are female respectively out of 140. The age ofrespondents is mostly above 25 years which is 72.9%and 27.9 are under the 25 years. The usage of -Phone, Telenor, Zong, Warid are 20(14.3%),70(27.1%), 30(21.4), 16(11.4%), and (4%) respectively.51% users are using the connection of brand above fiveyears and 48.6% are using below the 5 years.CorrelationsPASPASPearson CorrelationPSPPCRPRDMBE1Sig. (2-tailed)PSPPCRN140Pearson Correlation.290**Sig. (2-tailed).0011N140140Pearson Correlation.333**.359**Sig. (2-tailed).000.0001N140140140Pearson Correlation.396**.598**.548**Sig. (2-tailed).000.000.000N1401401401140 2013 Global Journals Inc. (US)Global Journal of Management and Business Research ( E ) Volume XIII Issue VI Version IVariablesYear 2013b) Reliability Statisticsbetween .60 to .70 is acceptable, greater than .70 isgood and above .80 is very good. In this study we usedseven types of variables to investigate the relationshipbetween IMC and brand equity. The cronbach,s Alphavalue of perceived advertising spending is .784, pricepromotion is .771, personal selling is .880, corporatereputation is .661, public relations is .594, directmarketing is .621 and brand equity is .845 respectively.

The Effect of Integrated Marketing Communication on Customer Based Brand Equity with MediatingRole of Corporate Reputation in Cellular Industry of PakistanPRDMPearson Correlation.396**.598**.548**1.000**Sig. (2-tailed).000.000.000.000N140140140140Pearson Correlation.340Sig. .e of 000.0001.000N140140140140140140Pearson . 1401140Year 2013**. Correlation is significant at the 0.01 level (2-tailed).Global Journal of Management and Business Research ( E ) Volume XIII Issue VI Version I26Correlation is used to determine the relationshipbetween a set of two variables. The most importantfactor is that it tells about that how much relationship isexisting between two variables. In this study we usedcorrelation method to judge the relationship of variables.The value of correlation lies between -1 to 1. Positivevalue shows that the relationship exists. The more thepositive value shows that the more stronger relation existbetween two variables. The coefficient values of adverting, price promotion, personal selling, public relations,corporate reputauion, brand equity is equal 1 whichshows that all variables correlate with each others.d) Multiple Regression AnalysisModel SummaryModelRR SquareAdjusted RSquareStd. Error of theEstimate1.759a.576.560.43290a. Predictors: (Constant), DM, PAS, PP, PS, PRIn the above table the value of R square is .576is a clear indicator that in model the five independentvariables contribute up to 57%.e) Results of Variance (ANOVA)In the following table the df cell the valu 5 tellsus that our independent variables are five. The value ofP is 36.386 is on the stage of 0.00 indicates thedependent variable (Brand equity) is significantlyinfluence by the five independent variables (advertising,price promotion, public relations, direct marketing,personal selling, and corporate reputation).AnovabModelSum ofSquaresDfMeanSquare1 .207139FSig.36.386 .000aa. Predictors: (Constant), DM, PAS, PP, PS, PRb. Dependent Variable: BEf)Coefficient AnalysisCoefficientsaModel1 (Constant)Unstandardized StandardizedCoefficients D.389.071.3425.453.000PS-.068.071-.070-.961.338 2013 Global Journals Inc. M.084.072.0821.178.000a. Dependent Variable: BEIn Above table the beta value of advertising .342is high at significant level which tells that in buildingbrand equity the more contribution of adverting. Thebeta value of personal selling is negative andinsignificant due to no contribution. Similarly publicrelation does not contribute to brand image. The reason

The Effect of Integrated Marketing Communication on Customer Based Brand Equity with MediatingRole of Corporate Reputation in Cellular Industry of Pakistanis that price promotion reduces the brand image in themind of customers regarding quality. Public relationsand direct marketing are significant which influence thebrand equity.b coefficients in model , and solving it for total effect c,and then decaying the total effect in to its direct (c’) andindirect effects (ab), using the following formulas.Direct effect (%) (c’ / c) x 100g) Measuring Direct and Indirect Effect as Per Baronand Kenny (2012)(3)Indirect effect (%) (ab / c) x 100As per Baron and Kenny’s (2012) modernmediation analysis require putting values of c’ and a andDirect effect (c’/c)In %Indirecteffect(ab/c)In .380.700370.03We checked the mediation role of corporatereputation between advertising, public relations directmarketing and brand equity directly and indirectly. Thedirect effect of AD, PP, PS, PR and DM is 26.82%,16.85%, 31.86%, 69.61 % and 29.96% on brand equityrespectively. The indirect effect of same variable is73.17%, 83.14%, 68.13%, 30.38% and 70.03%respectively.h) Sobel TestFor the calculation of H0:ab 0, Sobel testuses the following test statistic.27Test:Zab ab/sab(4)Which follows Z-distribution, that is,ab/sab will within the range of 1.96 interval for an ab 0; and if, it will outside of the stated interval. Where sabhas to be computed, using formula:sab (a 2s 2b b 2s 2a)(5)Where sa and sb are the standard errors of aand b, respectively.Table 3 provides detailed computations donefor Sobel test, using formulas given in 9 (a&b).Table 2 : Computations for Sobel testSobel testcomputationsa2b2sasbs 2as 2ba 2s 2bb 2s 471Statistic Zab, calculated for meditational effect(ab) of CR on variables PP and PS and PR falls withinthe 1.96 interval, and it shows corporate reputationdoes not mediate between integrated marketingcommunication and brand equity.VI.Limitaion of Studywas checked in telecom sectors of Pakistan with thesample size consist 135 questionnaires. The moreimportant thing is that this study conduct is business toconsumer markets and its results may wary when it willconduct in business to business markets and with highsample size.The limitation of this study is that the role ofintegrated marketing communication on brand equity 2013 Global Journals Inc. (US)Global Journal of Management and Business Research ( E ) Volume XIII Issue VI Version ICoefficientsABc'Abc (c' ab)Year 2013Table 1 : Total, direct and indirect effects

The Effect of Integrated Marketing Communication on Customer Based Brand Equity with MediatingRole of Corporate Reputation in Cellular Industry of PakistanYear 2013VII.Global Journal of Management and Business Research ( E ) Volume XIII Issue VI Version I28Conclusions andRecommendationsThis research has elaborated on the concept ofbrand equity and provided a theoretical framework istotally based on the vast literature review. Thisproposed framework shows the four ingredients ofbrand equity brand loyalty, perceived quality, brandawareness and brand association. Corporate reputationis added to the traditional branding model in an attemptto highlight the experiential brand image attributes thatare measured by customers’ perceptions of thefulfillment of their socio-psychological needs during theirtelecom network purchase. The dimensions of brandequity are proposed to be advertising, direct marketing,and public relations, all of which telecom managershave utilized to build such

the markets with the help of mass marketing strategies for mass customers and later on the integrated marketing communication came to existence in 1990 (Kotler, 2003). Promotional tools are the combination of advertising, price promotion, personal selling, public relations and direct marketing (Blythe, 2000).The IMC is

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